Trading analysis

EUR/USD (a 4-hour chart)

General Overview

The European currency has been among the outsiders once again for the second week in a row, although the indicators of foreign trade of Germany in September were better than expected, the situation of the euro has not been changed.Today we expect a range trading limited by the levels 1.3315-1.3440.The bears dominate on the market. The pair is in a bullish trend. Chinkou Span is above the price, and the price is fixed below the Ichimoku cloud, the sell signal is strong and confirmed. Tenkan-Sen and Kijun-sen are directed down, both lines are horizontal. The Cloud is going down as well.

The downward movement remains as long as the Kijun-sen is located below the price.

Bollinger Bands show a continuation of a southern movement. The bands are broadening, being directed downwards.The MACD histogram is in a negative area, its volumes are reducing.

Trading recommendations

The levels where the pair will either temporary stop or rebound are 1.3325 and 1.3210 - 1.3200. The potential target is the strong support level located at the level 1.3100.

Trading in financial markets involves substantial risks, including complete possible loss of investment capital. This activity is not suitable for all investors. High leverage increases the risk (Risk Disclosure).